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Minnesota Senator pushing for tax reciprocity agreement

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La Crosse, WI (WXOW) -

LA CRESCENT, Minn. (WXOW) – Minnesota State Senator Jeremy Miller (R-28th District) wants to bring back a tax reciprocity agreement between Minnesota and Wisconsin before next year.

Earlier this week, State Rep. Chris Danou (D-92nd District) was pushing for tax reciprocity and Miller wants to help reach an agreement before next tax season.

Wisconsin and Minnesota held a tax reciprocity agreement from 1968 through 2010, but ended because Minnesota historically lost state revenue. When the agreement ended in 2010, it affected over 56,000 Wisconsin interstate workers.

Without tax reciprocity, interstate workers are required to file tax returns in two states—and pay state income tax in both states as well.

The current issue with Wisconsin’s latest proposal is that Minnesota would lose $6 million per year in the state budget. “Thousands of constituents in both states are directly affected by this agreement, or lack of agreement,” Miller said.

Miller proposes splitting the $6 million per year net loss “50-50” between Wisconsin and Minnesota, which he said he believes should help both states itch closer to a new tax reciprocity agreement.

Miller said both states could have an agreement by next year, but “both states need to come to the table and reach a compromise”.

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